XML 40 R29.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Employee Benefit Plans
 6 Months Ended
Jun. 30, 2024
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
The Company’s Gratuity Plan in India (the “India Plan”) provides for a lump sum payment to vested employees on retirement or upon termination of employment in an amount based on the respective employee’s salary and years of employment with the Company. In addition, the Company’s subsidiary operating in the Philippines conforms to the minimum regulatory benefit, which provide for lump sum payment to vested employees on retirement from employment in an amount based on the respective employee’s salary and years of employment with the Company (the “Philippines Plan”). Liabilities with regard to the India Plan and the Philippines Plan are determined by actuarial valuation using the projected unit credit method. Current service costs for these plans are accrued in the year to which they relate. Actuarial gains or losses or prior service costs, if any, resulting from amendments to the plans are recognized and amortized over the remaining period of service of the employees.

The India Plan is partially funded whereas the Philippines Plan is unfunded. The Company makes annual contributions to the India Plan established with insurance companies. Fund managers manage these funds and calculate the annual contribution required to be made by the Company and manage the India Plan, including any required payouts. These funds are managed on a cash accumulation basis, inclusive of interest which is declared periodically. The Company expects to earn a return of approximately 7.0% per annum on the India Plan for the year ending on December 31, 2024.

Change in Plan Assets
Plan assets as of January 1, 2024$17,134 
Actual return634 
Employer contribution1,489 
Benefits paid(667)
Currency translation adjustments(38)
Plan assets as of June 30, 2024
$18,552 
Components of net periodic benefit costs recognized in unaudited consolidated statements of income and actuarial (gain)/loss reclassified from AOCI, were as follows:
 Three months ended June 30,Six months ended June 30,
 2024202320242023
Service cost$1,100 $953 $2,208 $1,909 
Interest cost386 393 774 788 
Expected return on plan assets(310)(264)(622)(527)
Amortization of actuarial (gain)/loss, gross of tax(147)(23)(302)(48)
Net gratuity cost$1,029 $1,059 $2,058 $2,122 
Amortization of actuarial (gain)/loss, gross of tax$(147)$(23)$(302)$(48)
Income tax effects on above(1)(18)(2)(37)
Amortization of actuarial (gain)/loss, net of tax$(148)$(41)$(304)$(85)
The Company maintains several 401(k) plans (the “401(k) Plans”) under Section 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”), covering all eligible employees, as defined in the Code as a defined contribution plan. The Company may make discretionary contributions of up to a maximum of 3.0% of employee compensation within certain limits.

The Company’s contributions to various defined contribution plans was as follows:
Three months ended June 30,Six months ended June 30,
2024202320242023
Contribution to the 401(k) Plans$1,190 $1,178 $3,633 $3,564 
Contributions to the defined contribution plans on behalf of employees in foreign subsidiaries of the Company
$6,891 $5,604 $13,640 $10,996